Building Societies Act, 1989
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Compensation for loss of office and bonuses to members. |
99.—(1) Where the terms of an amalgamation of, or transfer of engagements between, building societies include provision— | |
(a) for compensation to be paid by a society to or in respect of any director or other officer of that or any other society for loss of office or diminution of emoluments attributable to the amalgamation or transfer, or | ||
(b) for part of the funds of one or more of the participating societies to be distributed in consideration of the amalgamation or transfer among any of the members of the participating societies, | ||
such provision must be approved by the special resolution giving the approval of the society to the terms of the amalgamation or transfer unless the case falls within subsection (2). | ||
(2) Where the terms of a transfer of engagements between societies include provisions for compensation for loss of office or a distribution of funds as in subsection (1) and a society concerned applies to the Central Bank under section 96 (2) for its consent to the society's approving the transfer of engagements or the undertaking to fulfil engagements by a resolution of the board of directors instead of a special resolution of the society, the Bank shall not give its consent unless it is satisfied that the compensation or the distribution proposed to be made by each society is, in all the circumstances, justified and reasonable. | ||
(3) In this section— | ||
“compensation” includes the provision of benefits in kind; | ||
“distribution of funds” with reference to members, includes distribution by means of a special rate of interest available to members for a limited period; | ||
“loss of office” includes, in relation to an officer of a society holding office in a subsidiary or other associated body of that society by virtue of his position in that society, the loss of that office. |